Gainesville Regional Utilities Authority

Gainesville Regional Utilities Authority MINUTES June 10, 2024, 5:30 p.m. GRU Administration Building 301 SE 4th Avenue Gainesville, Fl 32601 Members Present: Chair Bielarski, Craig Carter, Vice-Chair Haslam, Eric Lawson, Robert Skinner _____________________________________________________________________ A. CALL TO ORDER B. ROLL CALL C. ADOPTION OF THE AGENDA Public Comment: Jim Konish Moved by Craig Carter Seconded by Robert Skinner Aye (5): Chair Bielarski, Craig Carter, Vice-Chair Haslam, Eric Lawson, and Robert Skinner Approved (5 to 0) D. BUSINESS DISCUSSION ITEMS 1. 2024-455 Budget Presentation: FY25 Proposed Budget (B) The CEO/GM, Tony Cunningham, introduced the item. The Chief Financial Officer, Claudia Rasnick; Director of Accounting and Finance for Utilities, Mark Benton; Chief Operating Officer, Brett Goodman and Chief Sustainability Officer, Eric Walters spoke to the item at hand. The Office of Management and Budget Director for the City of Gainesville, Steve Varvel, added some additional context for the board. 1 Chair Bielarski provided a presentation and shared with the board and GRU staff. 1st Motion Public Comment: Jim Konish, Debbie Martinez, Chuck Ross The board members discussed the motion on the floor. The board allowed staff to address some of the concerns brought up by the Chair. 4th Motion Public Comment: Jim Konish, Steve Varvel Recommendation: The GRU Authority receive the presentation and take any action deemed appropriate. Discussed Chair Bielarski "passed the gavel" to Vice-Chair Haslam in order to second the motion. Moved by Vice-Chair Haslam Seconded by Chair Bielarski 1st Motion: To terminate the General Manager Aye (2): Chair Bielarski, and Vice-Chair Haslam Nay (3): Craig Carter, Eric Lawson, and Robert Skinner Failed (2 to 3) Moved by Craig Carter 2nd Motion: Immediately reinstate the CEO search. Died for lack of second 2  3rd Motion: Have some sort of a list, reach out to somebody in regards to CEO/GM options. Died for lack of second Chair Bielarski "passed the gavel" to Vice-Chair Haslam in order to second the motion. Moved by Craig Carter Seconded by Chair Bielarski 4th Motion: 1. Reduce CAPEX by $20 M starting with $15 M of reductions as the GM suggests followed with the remaining $5 M allocated on a pro-rata basis among the departments 2. Reduce Budgeted O&M expenses by $12 million (apportioned between FY 2024 & 2025) as the Chair’s analysis supports 3. Reduce utility base rates to zero for FY 2025 4. Keep the GFT formula intact, freeze at $15 M and recover the $68 M overpayment against the $15 M by $6.8 million over 10 years 5. Reduce projected reserves from an $88 M overage to no more than $50 M by the end of the 10-year projection period Aye (4): Chair Bielarski, Craig Carter, Vice-Chair Haslam, and Robert Skinner Nay (1): Eric Lawson Approved (4 to 1) E. MEMBER COMMENT Public Comment: Jim Konish, Chuck Ross The Chief Financial Officer, Claudia Rasnick, spoke to the motion on the floor. The board discussed the motion with the CEO/GM, Tony Cunningham, further. Additional Comment: Director Skinner suggested that the board participates in a retreat. Staff will look into this request further and will come up with a plan to present to the Chair. 3  Director Carter mentioned his communication with the Chair offline. Additionally, he mentioned his concerns with removing the invocation from the agenda going forward. Moved by Craig Carter Seconded by Robert Skinner 1st Motion: 1. BFA (Budget, Finance and Accounting) shall undertake an analysis of the appropriate percentage of GRU’s net earnings before capital contributions & GFT to be transferred to the city, with an emphasis on sustaining debt reduction, capital investment, & affordable utility rates. When complete, present that analysis to the Board for consideration as part of the GFT/GSC formula as a limitation on the transfer 2. GM shall provide immediate communication to the board on IRP plans, decisions, incurred costs, and projected planning costs given the recent solicitation with which the board was unaware. Those costs shall be reviewed by BFA prior to Board submission 3. GM shall provide immediate communication to the board on Main Street WRF Capacity Renewal and Upgrade Project plans, decisions, incurred costs, and projected planning costs given the magnitude and scope of the project. Those costs shall be reviewed by BFA prior to Board submission 4. GM shall provide immediate communication to the board on SLA/MOU status and expected costs for fiscal year 2025 budget process. Those costs shall be reviewed by BFA prior to Board submission Aye (5): Chair Bielarski, Craig Carter, Vice-Chair Haslam, Eric Lawson, and Robert Skinner Approved (5 to 0) F. ADJOURNMENT The Chair adjourned the meeting at 8:53pm _________________________ Christine Kunkel, GRUA Staff Liaison 4